On Wednesday morning at 11:00 AM (Bangkok Time), the share price of PTT Exploration and Production Public Company Limited (SET: PTTEP) rose by 2.05% or THB 3 to THB 149.50 per share, following the announcement of the company’s 2023 consolidated financial statement that showed its net profit increasing 10% for the year while also issuing an interim dividend payment of THB 5.25 per share.
Yesterday, PTTEP reported a net profit of 2,208 MMUSD in 2023, increased 10.45% from a net profit of 1,999 MMUSD in 2022. This was mainly driven by significantly lower losses from non-operating items, including oil price hedging instruments and impairment charges. In addition, PTTEP managed to maintain a competitive unit cost by lowering it to 27.65 USD/BOE in 2023.
In 2023, the average sales volume of PTTEP and its subsidiaries decreased to 462,007 barrels of oil equivalent per day (BOED) or 1% when compared with 468,130 BOED in 2022, primarily from Oman Block 61 Project due to lower contractor entitlement and shutdown in this year, along with Bongkot Project end of concession in March 2023. However, it was offset with G1/61 Project and G2/61 Project due to full year recognition of sales volume, also G1/61 Project has successfully ramped up the natural gas production since the end of June 2023. Additionally, the average selling price decreased by 10% to 48.21 USD/BOE (2022: 53.39 USD/BOE).
The Exploration and Production segment reported a net profit of 2,513 MMUSD in 2023. An increase of 24 MMUSD from a net profit of 2,489 MMUSD in 2022, was primarily from Australia with an increase of 186 MMUSD arising from gain on divestment of AC/RL7 (Cash-Maple) Project, offset with write-off assets of AC/RL12 (Oliver) Project while the expense related to Montara incident Class Action settlement was recognized in 2022.
Africa reported a net loss decrease of 161 MMUSD, primarily from an increase in revenue from sales since Algeria Hassi Bir Rekaiz Project started its first crude oil sales in October 2022, as well as lower impairment loss on Mozambique Area 1 Project and Block 17/06 Project. America reported a net loss decrease of 102 MMUSD, primarily from impairment loss on PTTEP BL in 2022 while no such transaction in 2023.
However, Thailand reported a net profit decrease of 235 MMUSD, primarily from a decrease in revenue from sales from lower average selling price, offset with higher sales volume from G1/61 Project and G2/61 Project. Meanwhile, operating expenses increased from non-cash accounting transactions at the end of concession of the Bongkot Project. Other Southeast Asia reported a net profit decrease of 114 MMUSD, primarily from a decrease in revenue from sales from Malaysia Project. Middle East reported a net profit decrease of 69 MMUSD, primarily from other income decreased from the adjustment of contingent liabilities of Oman Block 61 Project in 2022 while no such transaction in 2023.
In addition, the company announced a dividend payment of THB 5.25 per share to be paid on 22 April 2024. The ex-dividend date was on 20 February 2024.
